On Energy Subsidy Reform and Sustainable Development in Nigeria

Abstract

Reforming fossil fuel subsidy in Nigeria offers greater opportunities in putting the country on a sustainable path of development. However, removing or reducing fuel subsidy is one knotty issue that has generated severe challenges to government over the decades. Several attempts at this direction have often met stiff opposition from entrenched interest groups. Among other things, a successful reform would require a strong political will to trade off the concentrated benefits of vested interests groups against greater benefits to the society. Achieving this end may not be an easy exercise and a number of issues/options that should be considered have been highlighted in the paper.